Aluminum production is amongst the most energy-intensive industrial processes on our planet. The principle in the metal industry is that electricity charges make up some 30–40% of the price of primary aluminum, meaning that the geography of competitive aluminum production coincides with the geography of inexpensive and stable energy. This means that the three simultaneous blows to the global supply of aluminum from the destruction of Gulf smelting capacity due to Iranian strikes, the restriction of Russian exports, and the rise in electricity costs in Europe that has put a stop to operations at Western aluminum factories since 2022 have created a niche for producers of aluminum who have access to low-cost and low-carbon electricity to occupy. Azerbaijan, operating its Ganja electrolysis facility on electricity that is supplemented with hydro-power and has the carbon intensity of 2 tonnes of CO₂ per tonne of metal produced (versus 13–15 tonnes of CO₂ worldwide), has all the cards in hand to become one of the most efficient producers of aluminum globally. The figures of the industry's January-July 2026 production show that Baku understands this perfectly well.

The question is whether the 2027-2030 program will allow turning this understanding into a competitive advantage.

The European Union Carbon Border Adjustment Mechanism came into........

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